Oil Jumps As Trump Asks Allies To Cut Off Iranian Oil

June 27, 2018: Oil Jumps As Trump Asks Allies To Cut Off Iranian Oil

The Trump administration is going to extreme lengths to disrupt as much oil from Iran as possible, and the implications for the oil market could be severe.

When the Obama administration sought to isolate Iran, it built an international coalition, put in place tight sanctions, and tried to curtail Iran’s oil exports. It worked, knocking around 1 million barrels per day offline. Still, the Obama administration granted leeway to an array of countries that depended on Iranian oil, including India, Japan and much of the EU, by granting them exemptions from sanctions as long as they did their best to reduce purchases.

The Trump administration has no compunction about making harsh demands to various countries, including U.S. allies, to cut off Iranian oil.